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Letter before action for an unpaid invoice: free UK template

Updated 16 October 2026 · Sources: GOV.UK, legislation.gov.uk

A letter before action is your final written warning before you take a client to court over an unpaid invoice. Sending one is expected by the courts and often gets the invoice paid on its own. Here's what to include and a template you can adapt. This is general information, not legal advice.

What to include

• Your business details and the client's correct legal name (check Companies House for limited companies).
• The invoice numbers, dates, amounts and original due dates.
• Statutory interest at 8% plus the Bank of England reference rate, and fixed compensation of £40, £70 or £100 per invoice under the Late Payment Act. See how to calculate it.
• A clear deadline. 14 days is common for business clients; sole traders and individuals must get 30 days under the Pre-Action Protocol for Debt Claims.
• How to pay, and an invitation to tell you if they dispute any part of the debt.
• A statement that you intend to start court proceedings without further notice if it isn't paid.

Template

Subject: Letter before action: unpaid invoice [number]

Dear [name],

We are writing about invoice [number] dated [date] for £[amount], which was due on [due date] and remains unpaid despite our reminders of [dates].

Under the Late Payment of Commercial Debts (Interest) Act 1998 we are entitled to statutory interest of [rate]% a year (£[daily] per day, £[interest] to date) and fixed compensation of £[40/70/100]. The total now due is £[total].

Please pay this amount by [date, 14 days from today] to [bank details]. If you dispute any part of this debt, please tell us in writing before that date with your reasons.

If we do not receive payment or a response by then, we intend to issue a claim in the County Court without further notice, which may increase your liability for costs and interest.

Yours sincerely, [name, business, contact details]

After you send it

Keep proof of sending. If the deadline passes, you can issue a claim online through Money Claim Online. Our guide on statutory demands vs letters before action covers the other formal option. LatePay creates this letter automatically with the figures filled in.